July 14th, 2020. Luke Egan
Government-Backed CBILS Property Development Finance: How to Apply
The property development sector has been hit hard by the uncertainty and delays of the COVID-19 crisis but, in welcome news, the Government has now announced a new life-line is on its way for property developers with CBILS property development finance.
We’ve been watching closely to see how COVID-19 has been affecting the UK property industry and at the end of April, construction on more than 20,000 homes halted. A fall of more than 50% in London’s private development industry was predicted, alongside the property market going into deep freeze.
Most developers have had to pause construction or have been unable to sell units due to social distancing rules, yet financial costs haven’t stopped. Therefore, the equity that developers hold within their projects has been unavailable right at the time when they need it the most. The new CBILS property development finance is designed as a lifeline to help UK developers access finance quickly without any upfront costs.
What is CBILS?
The Coronavirus Business Interruption Loan Scheme (CBILS) is a new Government-backed initiative that gives financial support to businesses that are losing revenue and dealing with disruptions in cashflow due to the COVID-19 outbreak.
Here are some key features of CBILS for property development:
- You can release up to £5m per site.
- Lenders fees and interest are covered by the Government for the first 12 months.
- Up to 75% of the net site value is available.
Capital can be used to finish off your site and will improve cashflow and your profit margin if you are servicing current debt.
Who Is Eligible for CBILS?
Key criteria that will qualify you for CBILS property development finance include:
- You are UK-based.
- You are a SME house builder, developer or investor.
- You can self-certify COVID-19 has affected your business.
For further information about who is eligible, talk to our friendly and experienced team about CBILS property development finance.
How Can We Help?
We have access to approved, specialist CBILS property development finance lenders and can help secure you much-needed finance to restart your business. If you need to refinance an existing development loan, then contact us about CBILS.
Article By Luke Egan
July 14th, 2020
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke